EPA v. COLORADO ORGANIC CHEMICAL CO, INC.

Case summary

NATURE OF CASE THIS IS A CIVIL ACTION PURSUANT TO SECTIONS 106 AND 107 OF THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT OF 1980(CERCLA), 42 U.S.C. SECTION 9606 AND 9607 AGAINST COLORADO ORGANIC CHEMICAL CO., INC.(COC), PHILLIP C. MOZER, AND FIRST INTERSTATE BANK OF DENVER. COC IS AN INACTIVE CHEMICAL PESTICIDE FORMULATING FACILITY IN DENVER, COLORADO, OF WHICH PHILLIP C. MOZER IS PRESIDENT. FIRST INTERSTATE IS THE TRUSTEE OF THE PHILLIP C. MOZER TRUST WHICH INCLUDES AMONG ITS ASSETS THE LAND UPON WHICH COC IS LOCATED. ON MARCH 7, 1984, AN ADMINISTRATIVE ORDER WAS ISSUED (EFFECTIVE MARCH 12, 1984), TO COC AND MOZER REQUIRING, WITHIN THIRTY DAYS, THE REMOVAL OF ALL HAZARDOUS SUBSTANCES FROM THE SITE AND THE INSTALLATION OF A SECURITY FENCE AROUND THE SITE. ALTHOUGH VERBALLY CONTESTING THE PROPRIETY OF THE 106 ORDER, COC AND MOZER AGREED TO COMPLY WITH TERMS OF THE ORDER. AFTER COC AND MOZER FAILED TO COMPLY WITH BOTH THE TIME FRAMES AND THE SPECIFIC REQUIREMENTS OF THE 106 ORDER, FIRST INTERSTATE WAS CONTACTED AND INFORMED OF THEIR RESPONSIBILITIES UNDER CERCLA. THEREAFTER, THE REMAIN ING DRUMS OF HAZARDOUS SUBSTANCES WERE REMOVED AND THE SITE WAS FENCED. THOUGH THE SITE IS NOW SECURE AND THE IMMEDIATE REMOVAL ACTIVITIES HAVE BEEN CONDUCTED, CONSIDERABLE ON AND OFF-SITE CONTAMINATION REMAINS AND WILL BE ADDRESSED THROUGH THE SAND CREEK INDUSTRIAL RI/FS. CAUSE OF ACTION THE ELEMENTS OF A CAUSE OF ACTION UNDER SECTIONS 106 AND 107 OF CERCLA AGAINST COC, MOZER, FIRST INTERSTATE, ARE ESTA BLISHED HEREIN AS FOLLOWS: - ALL THREE PARTIES ARE PERSONS WITHIN THE MEANING OF SECT ION 101(21) OF CERCLA, 42, U.S.C. SECTION9601(21); - THE COC SITE IS A FACILITY WITHIN THE MEANING OF SECTIO N 101(9) OF CERCLA, 42 U.S.C. SECTION 9601(9); - ALL THREE PARTIES ARE SUBJECT TO THE LIABILITY PROVISIONS OF SECTION 107(A) OF CERCLA, 42 U.S.C. SECTION 9607(A) IN THAT THEY EITHER OWNED OR OPERATED A FACILITY AT WHICH HAZARDOUS SUBSTANCES WERE DISPOSED; - A VALID 106 ORDER PROPERLY WAS ISSUED TO THE DEFENDANTS COC AND MOZER; - THE DEFENDANTS COC AND MOZER FAILED TO COMPLY WITH THE TER MS OF THAT ORDER; - EPA HAS DETERMINED THAT THE RELEASE OR THREAT RELEASE OF HAZARDOUS SUBSTANCES AT THE COC SITE MAY PRESENT AN IMMINENT AND SUBSTANTIAL ENDANGERMENT TO HUMAN HEALTH OR WELFARE, OR TO THE ENVIRONMENT. PROPOSED REMEDY FOR THE VIOLATIONS OF THE 106 ORDER, EPA SEEKS THE STATUT ORY MAXIMUM PENALTY OF $5,000.00 PER DAY OF VIOLATION PURSUA NT TO SECTION 106(B) OF CERCLA, REIMBURSEMENT OF AGENCY COST S, AND TREBLE DAMAGES FOR ALL COSTS INCURRED BY THE FUND AS A RESULT OF COC'S AND MOZER'S FAILURE TO TAKE PROPER ACTION. ADDITIONALLY, EPA SEEKS A DECLARATORY JUDGEMENT THAT ALL THREE DEFENDANTS SHALL BE LIABLE FOR FUTURE EPA COS TS TO BE INCURRED AT THE SITE. ISSUES OF NATIONAL OR PRECEDENTIAL SIGNIFICANCE IT IS EXPECTED THAT THE ISSUE OF TRUSTEE LIABILITY WILL ARISE IN THIS MATTER. BECAUSE THERE HAS BEEN LITTLE, IF ANY , CASE LAW IN THIS AREA UNDER CERCLA, THE ISSUE OF TRUSTEE LIABILITY WILL HAVE BOTH NATIONAL AND PRECEDENTIAL SIGNIFICANCE. FURTHERMORE, ON A REGIONAL BASIS, OUR RESOLUTION TO ENFORCE THE 106 ORDER IS OF PRECEDENTIAL SIGNIFICANCE. USE OF THE CASE DEVELOPMENT PROCESS THE REGION HAS WORKED VERY CLOSELY WITH BOTH LEGAL AND TECHNICAL PERSONNEL IN EPA HEADQUAR

Defendants (3)

• COLORADO ORGANIC CHEMICAL CO., INC.Named in complaintNamed in settlement
• FIRST INTERSTATE BANK OF DENVERNamed in complaintNamed in settlement
• MOZER, PHILLIP C.Named in complaintNamed in settlement

Facilities (1)

• COLORADO ORGANIC CHEMICAL CO INC

  5321 DAHLIA STREET, COMMERCE CITY, CO, 80022

  Registry ID: 110002969413

Statutes cited

• CERCLA 107A — Cost Recovery
• CERCLA 106B — Superfund

Enforcement conclusions (1)

• COLORADO ORGANIC CHEMICAL CO.entered 1986-01-06

  Primary law: CERCLA

Timeline (8 milestones)

• 1984-09-19Referred To Headquarters
• 1984-10-30Referred To Dept Of Justice
• 1985-01-15Referred TO U.S. Attorney
• 1985-10-07Complaint Filed With Court
• 1986-01-06Final Order Lodged
• 1986-01-06Final Order Entered
• 1986-01-06Concluded
• 1987-10-01Enforcement Action Closed